Continued from last issue.. Spider-Man is dropped in a vat of oil which is lit on fire by the White Dragon. Spider-Man sinks to the bottom and covers himself with webbing before jumping through the flames. Spider-Man then swings himself to the nearby river to put himself out, allowing the White Dragon and the Dragon Lords to escape. Finding Phillip Chang unharmed, Phillip explains to him that when in Hong Kong he was involved in gang activity, but a near death experience convinced him to change his criminal ways and come to America and make a good living.

Spider-Man agrees to help Phillip defeat the White Dragon, and uses the spider-tracer he tagged the White Dragon with to track him down. Trapping the White Dragon and the Dragon Lords gang between giant webs, Spider-Man battles the White Dragon one-on-one and easily defeats him. The defeated White Dragon is then strung up on the giant web for the police to handle.

Still recovering in the hospital, Aunt May is in for a surprise when Joe Robertson shows up with a television that is hooked up to a live broadcast of Peter Parker's graduation. As Peter prepares to receive his diploma, he becomes more and more concerned as his name is not on any lists. Finally when his name is not called, he decides to find out what is going on. He's told that he didn't graduate because he's missing a gym credit, and that he can make it up in the summer. Peter can't believe how bone-headed it all is, but realizes that after September he'll be done with his education and will be ready to face the world.